1. I believe that the Principle Accounting Officer should also be required to attest to the effectiveness of internal controls over financial reporting, in addition to the CEO and CFO. In many corporations, the PAO is also the CFO, and because of their CFO role, are required to attest to the effectiveness of internal controls over financial reporting. In the Koss Corporation, Michael Koss held the roles of both CEO and CFO, so he was the only person required to attest to the effectiveness of internal
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between judgement and action is broken once professional scepticism reaches a point or threshold where the auditor is bound into action. Whether this occurs or not depends on other factors such as the evidential input (link 2). Nelson mentioned that audit planning and opinion is influenced by professional skepticism which is affected by the amount of information the auditor garners about the client. An auditor’s skeptical judgement is influenced by three factors which are knowledge (link 3), personal
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Before the fall of corporations like Enron and WorldCom, there was also far too much corporate fraud during the Internet bubble. According to Stanley Block and his co-authors, “The major accounting firms had failed to detect fraud in their accounting audits, and outside directors were often not provided with the kind of information that would allow them to detect fraud and mismanagement.” (Block, 12). What is the definition, in a nutshell, of the Sabarnes-Oxley Act? This is something that needs to
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June 5, 2014 Audit Report Number: LJB-505-2014 To: Patrick Krause President, LJB Company Anthony Sahara General Counsel, LJB Company Rebecca Patriosky Treasurer and Controller, LJB Company From: Dilenia Baez Audit Engagement Manager, Ralph & Golberms, PLLC Highlights As part of the engagement approved by Patrick Krause, President of LJB Company. Ralph & Golberms, PLLC evaluated the current internal control functionality of LJB Company
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account (#111-1) and document your procedures on an audit document similar to the one in Exhibit 9-4. Indicate and prepare on the audit document any proposed correcting entries that are needed to ensure fair presentation of this financial information. [Case 9-1.doc] Lakeside Company Tests of Buildings - Warehouse/Office December 31, 2012 Audit document No. W-3 Prepared by: KB Reviewed by: RG Reviewed by: JG Description | Amount | | Audit Procedures | Balance per books - Beg. of Year
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Case #3.4 – Sunbeam – Incentives and Pressure to Commit Fraud I. Technical Audit Guidance To maximize the knowledge acquired by students, this book has been designed to be read in conjunction with the post-Sarbanes-Oxley technical audit guidance. All of the post-Sarbanes-Oxley technical guidance is available for free at http://www.pcaobus.org/Standards/index.aspx. In addition, a summary of the Sarbanes-Oxley Act of 2002 is also available for free at http://thecaq.aicpa.org/Resources/Sarbanes+Oxley/Sarbanes-Oxley+–+The+Basics
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under a misleading firm name. 11. A member shall not knowingly subordinate his or her judgment to others. 12. A member shall follow the technical standards of the Auditing Standards Board in an audit engagement. 13. A member bases the fee on the findings determined by the IRS in a tax audit case. 14. A member discloses confidential information in a peer review of the firm’s practice. 15. A member issues an unqualified opinion when a client departs from GAAP because of a conceptual
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company that provides air cargo carrying services within the Asian region. The company owns five fully owned subsidiaries and the major shareholders of this company is Bangor Berhad. The company’s external auditor is Kencana & Associates where the audit team is led by Mr Chuah Mun Soong. On 5th February 2006, Mr Chuah has been informed by his team that there are some inconsistencies in the accounts of FCB. Therefore he has decided to do his own investigation on the company to determine is there any
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company awarded with several engineering projects and its cumulative revenue for 2004 is RM1 million and RM1.7 million for 2005. The company is family based company and most of them only have secondary school background. They do not familiar with the audit. They also did not familiar with Accounting Standards and the provision of the Companies Act. The company also consists from the non experiences staff of their job. In May 2006, the company had employed Cik Amy graduated from a local university with
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Ghost Employees As long as a company has a payroll office, the risk of having a ghost employee exists. A ghost employee refers to someone, either real or fictitious, who is on the company’s payroll but does not actually work for the company. A ghost employee is most frequently a recently departed employee, a made-up person, or a friend or relative of the fraudster who created the employee. There are a few steps that are taken in order for the ghost employee to be successfully added. First, the
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